Bahamas Real Estate Association (BREA) recommends to the Government that it reduce Stamp Duty on property deals by 2 percentage points “across the board” ...taking the rates back to where they were before the 2010-2011 Budget

Realtors Recommend Stamp Duty Cuts 'Across The Board'

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Real Estate Association (BREA) has recommended to the Government that it reduce Stamp Duty on property deals by 2 percentage points “across the board”, taking the rates back to where they were before the 2010-2011 Budget.

Franon Wilson, BREA’s president, confirmed in a recent interview with Tribune Business that the Association had recommended to the Christie administration that it look beyond the cut in the top Stamp Duty rate, from 12 per cent to 10 per cent, which it brought in with the 2012-2013 Budget.

“That’s one of the things we recommended, yes,” Mr Wilson said, when asked by Tribune Business whether BREA had recommended that all Stamp Duty rates be reduced by two percentage points.

“One of the things we did invite the Government to consider was reducing that across the board, as what it would do for the $250,000-plus category it would do for all others as well.

“We’re grateful that at least one group will see a benefit, but that same excitement that group over $250,000 has would be shared locally with everyone else/.”

Still, Mr Wilson said BREA and its members welcomed “anything to reduce the cost of home ownership” and stimulate activity in the market.

Stamp Duty is effectively a one-time cost imposed on real estate transactions, and Mr Wilson said the cut in the top rate would boost activity in middle class Bahamian communities such as Twynam Heights.

The revised Stamp Duty structure involves a 4 per cent rate on property valued at $20,000 or less; 6 per cent for property valued between $20,000 and $50,000; 8 per cent for property valued at between $50,001 and $100,000; and 10 per cent for holdings greater than $100,000.

Mike Lightbourn, head of Coldwell Banker Lightbourn Realty, said that any Stamp Duty reduction was welcome, but the real estate industry needed to remember that the Government had to raise revenues somewhere.

Noting that the Government had given up much in Stamp Duty with the exemptions for first-time buyers on properties worth up to $500,000, Mr Lightbourn added: “The less taxes the better, but that’s one of the sources of revenue. Any time you don’t have to pay Stamp Duty, it all helps.”

William Wong, head of William Wong & Associates, said the Government should follow BREA’s recommendation and reduce Stamp Duty rates across all price brackets.

“I’m hoping they will take a look at it and make the necessary changes,” Mr Wong said.

July 04, 2012

Tribune242

Caribbean Blog International

The Bahamian People and Businesses are Faced with a Limited Scope of Concessions in The Bahamas Government's 2004/2005 National Budget

The Bahamas Government Revenue Limits Concessions For The Bahamian People and Entities

PM Reveals New “Limited” Concessions For Bahamians

 

 

By Hadassah Hall

Nassau, The Bahamas

Journal Staff Writer

05/27/04

 

 

 

Until there is a recovery of recurrent revenues, the Bahamian people are faced with a limited scope of concessions in the 2004/2005 budget presented by Prime Minister Perry Christie on Wednesday.

These new concessions include adding bath soap to the breadbasket items and eliminating customs duties on ink and certain other materials required for computers as part of the ongoing programme to encourage computerization.

Mr. Christie also revealed that the government would remove customs duties and stamp duty on imports of building material for use by private schools so as to enable them to maintain standards. 

Mr. Christie said he is also eliminating customs duties on all musical instruments so as to assist professional musicians and many bands formed by young people.

On the other hand, the government is expected to effect a more “stringent penal regime” to discourage and punish tax evaders in relation to stamp duty collection.

Mr. Christie said the Stamp Act would be extensively amended to reduce the losses resulting from the numerous schemes by tax cheats.   He said it is currently the trend in commercial transactions and in the sale of land.

According to the prime minister, the amendments to be laid before parliament in short order are projected to realize an additional $10 million for the treasury.

Mr. Christie added that the government must continue to modernize the existing revenue system.  He said this is why the major emphasis is on formulating and implementing measures to strengthen revenue administration.

In addition to strengthening the stamp duty collection system, a new Trade Information Management System is being installed in the Customs Department.

Using the latest information technology, Mr. Christie said, the system will enable customs authorities to identify and control areas where there is or potential for a serious risk of revenue leakage.

Mr. Christie emphasized how crucial it is that all taxpayers meet their obligations.

“It is incumbent on every responsible taxpayer to honour his or her tax obligations in a timely manner,” Mr. Christie urged.

Additionally, the prime minister said the government’s strategy to “deliberately avoid” increasing the burden of taxes on Bahamians is due to the country being on the threshold of achieving significant improvements in revenue collection and administration.

The prime minister is confident that the expanding economy will provide stability and growth to key sectors like tourism and financial services, therefore generating additional government revenues without the need to raise taxes.

Mr. Christie admitted that during the past two years since assuming office, the Progressive Liberal Party government observed with “great concern” the difficult revenue position that he said constrained the full implementation of its policies.

He pointed out that in the two previous budgets, despite the weakness of the revenue position, the government deliberately avoided increasing taxation.

“I believed that the proper course was to concentrate on strengthening revenue administration rather than on increasing the burden of taxation on Bahamians,” Mr. Christie said.  “I am continuing with this patient strategy in this budget which contains no new revenue measures impacting directly on the Bahamian people.”

The prime minister said this also includes closing loopholes in the existing system that results in a substantial loss of revenue.

Mr. Christie added that the government at a later date proposes to review a wide range of fees and charges that in some cases have not been changed in decades.

In relation to revenue, Mr. Christie said the government expects a 5 percent increase in recurrent revenue over the 2003/2004 budget level.  He said this represents an increase of $132 million or 14 percent over the 2003/2004 projected out turn that was less than the budget estimates.

He also said that the government is making a small number of adjustments to existing sources of revenue to provide $27.3 million.  Mr. Christie disclosed that among them is the government’s intention to sell the Radisson Hotel for at a net profit of least $10 million.